Cash Flow Model

Cash Flow Modelling

Ever thought what it would be like to run out of money in retirement? For more than 60% of retirees, this is a constant fear. Life can be unforgiving when it comes to financial ignorance, which is why we offer a cash flow modelling service to give you the insights into what your retirement will look like, and what clever strategies you can use to maximise your retirement.

Cash Flow Modeling Key points

Cash flow modelling (CFM) is used to project the long-term sustainability of an individuals net wealth across different scenarios. In CFM we take a snap shot of an individual’s current financial position, their income, expenses, assets and liabilities, as a point of reference to move a scenario out into the future.

We consider this to be a financial health check, to see how healthy your finances really are, and how long they will last across difference life events.

We provide these insights to give clients an informed picture of what life will be like in the future given their current situation and compare how small adjustments can make big differences to that future. We look at how disposable income can be deployed, with investment returns and inflation in mind, to close potential shortfalls in future cash flow requirements.

Additionally, we highlight the importance of consistent returns, in line with costs and inflation, and the effects an unfocused and inconsistent return could have on your end position. It is important that key themes are understood, to empower you and your finances, as life can be unforgiving when it comes to financial ignorance.

Key Themes:

  • Inflation + Costs < returns
  • Asset classes and historic return expectations
  • Risk vs Return
  • Income generating assets
  • How lesser known taxes can affect your future